Panama City will soon begin accepting cryptocurrency for a variety of municipal payments, including taxes, permits, and even bus tickets, Mayor Mayer Mizrachi announced on April 15. The move positions the capital as one of the latest global jurisdictions embracing digital assets for public services.
According to Mizrachi, residents will be able to pay using Bitcoin (BTC), Ether (ETH), as well as the stablecoins USDC and USDT, once the necessary crypto-to-fiat infrastructure is in place. The announcement was made via a post on X, formerly Twitter.
Unlike previous efforts by past administrations, this initiative overcomes legal hurdles tied to the U.S. dollar’s status as the country’s official currency. Mizrachi confirmed that the local government has partnered with a bank that will instantly convert any cryptocurrency payments into U.S. dollars, ensuring compliance with current financial regulations and avoiding the need for new legislation.
Panama City joins a growing list of cities and states worldwide turning to cryptocurrency as a modern payment option. The city follows in the footsteps of Colorado, which began accepting crypto for tax payments in 2022, also converting digital assets to fiat instantly.
Internationally, Lugano, Switzerland, started accepting Bitcoin for taxes and fees in December 2023, further solidifying its identity as a “Bitcoin city.” Similarly, in December 2024, Vancouver’s city council voted to become a “Bitcoin-friendly city,” with plans to explore crypto integration for tax collection.
On a broader legislative level, North Carolina could soon recognize cryptocurrency as an official form of payment. State lawmaker Neal Jackson introduced the “North Carolina Digital Asset Freedom Act” on April 10, which would allow residents to pay taxes using digital assets.
With this new initiative, Panama City is not only modernizing its payment systems but also signaling a broader openness to innovation and investment in the crypto sector. The move reflects a global trend of governments adopting blockchain-based technologies to enhance financial flexibility and future-proof public finance.
